July-August new high-yield issuance second lowest in over half a decade

By Paul A. Harris

St. Louis, Mo., Sept. 6 - You have to turn back the calendar over half a decade in order to locate a weaker two months than July-August 2002 for new high-yield issuance, according to Martin Fridson, chief high yield strategist for Merrill Lynch & Co.

"Our numbers for July-August 2002 are 17 deals for $3.1 billion," Fridson told Prospect News. "From January 1997 to the present, the only smaller two-month period was November-December 2000, at 13 deals for $2.8 billion," he added.

Fridson specified that July 2002 is the lowest month, both in terms of number of deals and the total dollar amount of business transacted, of the entire 5? year period.

August 2002, he added, is the lowest August in the time frame.

"Given the growth of the market over the years, comparisons with much earlier periods would not be valid," Fridson commented.

During the July-August 2002 period eight deals were delayed or pulled altogether. These include Dave & Busters, Casella Waste, Marietta Corp., Gristede's, Graham Packaging, Mobile Storage, Gerresheimer Glass, Chuckchansi and Swift & Co.

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